Mellor & Backo LLP

Dedicated To Your Success Since 1975

Understanding the estate planning process

| Nov 6, 2020 | Uncategorized

One of the issues with estate planning in Florida involves a lack of information as to why people need to create one even if they don’t have a vast family fortune. It can be easy to say that since you don’t have a lot, your family will know what to do with your assets after you pass away. In an ideal world, that would work, but there are laws and paperwork that can really complicate asset distribution for your family. You may want further information about what areas you need to concentrate on when creating your estate plan.

Taxes

When people think about estate planning, they usually think of their death. Although that is certainly a part of it, the fact is that you’re going to need to also navigate your state’s tax laws. Heavy taxes can be placed on your living relatives if you’re not careful in how you structure your will. Typically, you will have the aid of a tax attorney to help you navigate certain legal hurdles, but it should be noted that an accountant can also help when dealing with the financial side of your will.

Assigning fiduciaries

An incredibly important part of your estate plan is the naming of your executor and trustee. An executor is the person who will be responsible for distributing your assets among the people you placed on your will to receive assets. A trustee is a person who holds the legal title of the property.

Naming heirs

This is especially important if you have re-married. When you don’t create a will, you risk having your assets automatically assigned to your either your spouse or your children while disinheriting the other. Of course, this depends on the state you live in and a variety of other factors.

Estate planning is a great way to ensure that your family is taken care of after you pass. However, it is also very complicated, so having a trusted legal team behind you may place you in a better position.